A hotel sold four cases of wine at a conference function for $2,160 cash. The four cases cost the hotel $1,000. The set of accounting entries to record this transaction would include which of the following:

Question

Quizplus · Accepted Answer

The correct accounting entries to record this transaction involve crediting the wine revenue account for the sales amount ($2,160) to recognize the revenue earned from the sale, and crediting the wine inventory account for the cost of the goods sold ($1,000) to reflect the reduction in inventory due to the sale. This is accurately represented in option E.

A Hotel Sold Four Cases of Wine at a Conference